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A two - year long forward contract on a non - dividend - paying stock is entered into when the stock price is $ 4
A twoyear long forward contract on a nondividendpaying stock is entered into
when the stock price is $ and the riskfree rate of interest is per annum with
continuous compounding.
a What are the forward price?
b months later, the price of the stock is $ and the riskfree interest rate is
still What are the forward price and the value of the forward contract?
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